China has it all to modernise its defence industry: US Secretary of Defense

China's actual military-related spending is higher than its official budget, estimated at more than $190 billion in 2017

China has the political will and fiscal strength to sustain a steady increase in defence spending, supporting the continued modernisation of the People’s Liberation of Army (PLA), the development of a military-civilian fused defence industry, and the exploration of new technologies with defence applications. China draws from diverse sources to support PLA modernisation, including: Domestic defence investments, indigenous defence industrial development, a growing R&D/S&T base, dual-use technologies conveyed in part through military-civil fusion, and acquisition of foreign technology and know-how. 

China’s long-term goal is to create a wholly indigenous defence-industrial sector, augmented by a strong commercial sector, to meet the needs